One other caveat I should mention:

Even if the VM has reduced its memory consumption, Hyper-V does not
necessarily reclaim the unused memory from that VM.

Generally, Hyper-V reclaims unused memory from a VM if it's seeing
memory pressure from other VMs or if the Hyper-V host itself is seeing
memory pressure.

The behavior you are seeing might be expected. Indeed, if your physical
host has a lot of physical memory, Hyper-V may decide that enough memory
is available to satisfy all VMs and it doesn't need to reclaim.

If say a bunch of other VMs come online that also need a lot of memory,
perhaps we would see Hyper-V start to reclaim the unused memory from the
existing VMs.

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https://bugs.launchpad.net/bugs/1584597

Title:
  Hyper-V Memory Ballooning re-broken in 16.04

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